Ofwat proposals for cost allocation to business units

Ofwat consultation (32 pages, PDF) on proposals to require water and sewerage undertakers to produce additional data returns to Ofwat, allocating each of direct costs, general and support costs, other business activities costs, exceptional items, infrastructure renewal charges, depreciation and amortisation between the following business units:

This new stream of reporting would apply from the 2010 June return. It would represent a significant increase in the quantity of data reported: in the current June return, the allocations to activities relate to direct costs only and use a shorter list of activities (water treatment and resources, water distribution, sewerage, sewage treatment, and sludge treatment and disposal).

Responses by Friday 14 November 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Ofwat, Water.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon